Credit Card Glossary
Magnetic Stripe
The stripe on the back of a credit card is a magnetic stripe. It is also called a magstripe. The magstripe is made up of tiny iron-based magnetic particles that are encased in a plastic-like film. Each particle is really a tiny bar magnet about 20-millionths of an inch long.
A magstripe reader is used to read the information on a magnetic stripe. If the ATM can’t read your credit card your problem might be due to a scratched or dirty magstripe, an erased magstripe (caused by exposure to magnets or a store’s electronic article surveillance demagnetizer.)